Private Equity Trends Defining the Next Chapter

As private equity adapts to a higher interest-rate environment, 2025 is being defined by a set of critical trends shaping strategy and performance. From NAV-based lending and secondary market innovation to AI-driven deal sourcing and procurement-led value creation, leading firms are evolving their approach. 

Unlocking Liquidity Through Secondaries and NAV Lending 

With exits slowing and traditional IPO or trade-sale routes constrained, firms are turning to the growing secondary market to create liquidity. GP-led secondaries – where general partners (GPs) initiate the sale or restructuring of an existing portfolio of assets – allow firms to extend holding periods while providing partial liquidity to investors. According to industry estimates, global secondary deal volume could surpass £150 billion in 2025.

At the same time, NAV (Net Asset Value) lending—a form of debt secured against a fund’s portfolio—has emerged as an increasingly popular tool to access liquidity without triggering asset sales. When used responsibly, these instruments offer GPs a way to meet capital calls, support portfolio companies, or finance distributions amid exit delays. 
 

Embracing Digital Tools and AI for Competitive Advantage 

Technology adoption has accelerated across all layers of the PE value chain. Firms are increasingly deploying artificial intelligence, machine learning, and predictive analytics to streamline sourcing, due diligence, portfolio monitoring, and value creation.

In deal origination, AI is helping identify targets earlier through pattern recognition in public filings, web traffic, hiring trends, or patent activity. In portfolio management, advanced data tools are being used to monitor real-time KPIs, automate financial reporting, and flag early signs of distress or underperformance.  
 

Rebuilding LP Confidence Through Transparency and Alignment 

In an environment of lower returns, GPs are under pressure to demonstrate alignment with their limited partners (LPs). This includes more transparent reporting on fees, fund performance, and ESG outcomes.

Continuation funds, rolling funds, and co-investment opportunities are being structured to give LPs greater control over liquidity and exposure. On the governance side, there is a noticeable uptick in fee standardisation, performance benchmarking, and conflict-of-interest disclosures, prompted both by regulation and competitive necessity. 

Building Operational Depth and Efficiency 

As financial engineering alone becomes insufficient, firms are investing more deeply in operational expertise—whether through in-house value creation teams or partnerships with operating executives. This includes initiatives focused on pricing strategy, supply chain optimisation, digital adoption, and sustainability reporting.

Crucially, this operational expertise is no longer limited to the post-acquisition phase. Increasingly, it begins even before due diligence—especially in procurement, which is now recognised as a source of value ahead of the deal, not just after it. What was once a lever for post-close efficiency is now an integral part of the deal assessment process.

With more advanced analytics, investors can spot margin improvement opportunities early, particularly in businesses with fragmented or unmanaged supplier bases. By identifying ways to consolidate spend, renegotiate supplier terms, and apply category management strategies, private equity firms are realising 5–15% savings on external spend—improvements that feed directly into EBITDA. 

Start Smarter: Unlock Value Before the Deal 

In a market shaped by higher interest rates, uncertain exit multiples, record dry powder, and liquidity pressures, early value creation is more important for PEs than ever.

A pre-due diligence value creation plan—powered by procurement—can reveal hidden EBITDA upside before you sign. Identify quick wins and reduce external spend from day one. Contact our experts to build your pre-deal advantage.